HM Insights

Self-Assessment 2018/19 daily filing penalties to be waived by HMRC

In the last few days HM Revenue & Customs (HMRC) have advised that daily penalties will not be charged where an individual has been late filing their 2018/19 self-assessment tax return.

HMRC have said that this is in recognition of the exceptionally difficult circumstances many taxpayers faced due to the impact of the pandemic.

Daily penalties are usually charged at £10 per day for each day the return is more than three months late, for a maximum of 90 days.

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What if I am over six months late filing my tax return?

The six-month and twelve-month late filing penalties will be charged in respect of 2018/19 tax returns not submitted by the relevant dates. These penalties are calculated at £300 or 5% of the tax due if greater.

HMRC has confirmed that it expects returns to be filed on time where possible, but it will consider coronavirus as a reasonable excuse for missing deadlines.

What is a reasonable excuse?

If you receive a tax penalty, there is a chance you'll be able to appeal this. To do this successfully you need to have reasonable grounds. These are extenuating circumstances that HMRC deem reasonable and serious enough to justify the reason you incurred a penalty.

  • You may be able to appeal on one of the following grounds:
  • your partner or another close relative died shortly before the tax return or payment deadline
  • you had an unexpected stay in hospital that prevented you from dealing with your tax affairs
  • you had a serious or life-threatening illness
  • your computer or software failed just before or while you were preparing your online return
  • service issues with HM Revenue and Customs (HMRC) online services
  • a fire, flood or theft prevented you from completing your tax return
  • postal delays that you could not have predicted
  • delays related to a disability you have

You must send your return or payment as soon as possible after your reasonable excuse is resolved.

Get in touch

If you require assistance in relation to anything mentioned in this article, please get in touch with a member of our team.

Useful links

CORONAVIRUS LEGAL ADVICE

PERSONAL TAXATION ADVICE